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Growth effect of foreign direct investment: the role of labor market flexibility


Citation

Nordin, Nurnaddia and Nordin, Nurhaiza and Yunus, Mawar Murni and Zainudin, Norzalina (2019) Growth effect of foreign direct investment: the role of labor market flexibility. Economic Journal of Emerging Markets, 11 (1). pp. 19-31. ISSN 2086-3128; ESSN: 2502-180X

Abstract

This paper deals with the role of the labor market in moderating the growth-effect of foreign direct investment (FDI) in developing countries. FDI has developed rapidly and become the main source of economic growth in developing countries. The purpose of this paper is to examine the role of labor market flexibility in mediating the impact of FDI on economic growth in developing countries. Panel threshold regression analysis proposed by Hansen (1999) is employed to assess the hypothesis of the study. Findings/Originality: The results provide the empirical finding of the role labor market in moderating the growth effect of FDI in developed and developing countries and fill this gap by assessing the role of labor market flexibility as an absorptive capacity in FDI-growth link in developing countries.


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Additional Metadata

Item Type: Article
Divisions: Faculty of Human Ecology
DOI Number: https://doi.org/10.20885/ejem.vol11.iss1.art3
Publisher: Universitas Islam Indonesia
Keywords: Labour market flexibility; Growth-effect; Foreign direct investment; Threshold
Depositing User: Nurul Ainie Mokhtar
Date Deposited: 01 Jun 2023 01:50
Last Modified: 01 Jun 2023 01:50
Altmetrics: http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.20885/ejem.vol11.iss1.art3
URI: http://psasir.upm.edu.my/id/eprint/80015
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